Facebook IPO: Shareholders Look To Cash Out

5/16/2012 9:04AM

Facebook on Wednesday increased the size of its initial public offering to more than 400 million shares, one day after it raised the IPO's expected price range. George Stahl has the latest on The News Hub. Photo: Bloomberg.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... we're still working to override the chore still the Dow Jones George a bill to talk about Facebook yes ... they have a new filing out this morning that shows that shareholders selling shareholders early investors actually planned to sell a lot more stock ... than they had previously planned to yes ... they Facebook is going to war shares on the Michaeli goes public on Friday morning ... I've ninety six million ... all this in the company's own shareholders ... people like all of the additional shares on the recent Senate report gives ... ICU at Goldman Sachs nearly double or delay of more than doubling the onus ... is on and I when I went through the filing states in Iraq how much they're selling ... its little it's crazy so previously ... so these investors Accel Partners BC space the season really Messrs Accel Partners ... DST Global Goldman Sachs there been sold a twenty three percent ... of ... their Facebook stake which already was a lot of gratitude and a moment that now ... excel is going to sell ... twenty percent ... GST is going to sell forty percent of the sexes is still fifty percent yet Tiger Global was to sell seven other to sell fifty percent and there really are their dumping a lot of shares in what what's easy just because the valuations higher ... I think sell yet reason that they're they're seeing where it's being priced in and there ... and it did and that's an attractive prices to sell and egos back to when they were taught about on yesterday's show which is he had this dichotomy between the individual investor ... who may not be ... an overly sappy with investing but yet knows that Facebook is a good site and something that's that that that they like to use verses ... the clerk would SmartMoney she's at the beginning ... which you understood the overnight dichotomy softened to the right right and and and season sees the price of this intense isn't what was to give into these prices notes are my people the valuation that they had originally targeted the summer and seventy seven billion in ninety six billion was a personally published Crowther saying ninety three one o four ... why action with the decrease in our chairs you're looking at you know hundred six billion they did it did okay given it a total ... total maps and another and ... the increased range suggests obviously that was oversubscribed ... so ... it's not to be tough for them to get over a hundred billion dollars write just to put this in context for people ... it's a reason IPO's CIA had last jihad linked in Groupon's anger for instance right so how many shares that selling shoulders Don ... pulled LinkedIn group on the early investors sold personally not ... be held on every is in doubt ... sold to the insiders sold just seven percent of their shares ... trade to now we have with Facebook which is supposed to be ... that the best of the best ... one more silly hat which it which is kind of ... in kind of scary right and and we and we know that Facebook is at the end of this sort of sheen of in an IPO is so obviously everything in the Dili to this that there is a lot enthusiasm so it does make the look that sense that by this point BP valuations are low paid and had a with the fundamentals would suggest you you mention fundamentals let's let's get to know that we had a great story it's on page one of the Journal today ... general Motors has said that there to pull their advertising on Facebook really worth spending a lot ... a ten million dollars in twenty eleven out of the one point eight billion dollar advertising budget ... nevertheless this is a big brand advertisers that basically said we don't know ... if we're getting ... value for Facebook advertising sort of pullback ... write a GMC nation's third biggest advertisers say yes to say this is the huge ever ties making it seemed that so far we haven't been able to make Facebook or crusty finance and grow accounts like this in order to ... really ... grow we know it's really going on is a lot people see in Amman in to the crux of them is is their advertising is convenient to cry that ... you know I think a little bit of this is just ... the ... traditional media are traditional advertising still try to figure out a way to use social media exactly yes and and that's and that's and that's it resists regard to because ... you know with social media the people who are using it to have the choice of how they want to use that platform unhappy when he use Facebook ... yet so pop bombarding them with image is the message is like all the aunties do with newspaper ads for TV ads are some the wary of ... the people have to see it as a consumer that media ... isn't necessarily gonna work into it it didn't do needs to be this kind of degree on how to leverage what Facebook an offer ... he'll come visit Facebook I mean like a guy who never were able to figure that out ... would see a Facebook it this is inching pointed and people need to focus on it because with social media course Facebook is ... asking its advertisers to do things like create funny posting so Goviral right that that will fit in users' news feed streams right and it was the last place in that ... that requires them to ... to try and figure out a different kind of advertising are just learning to see again this is to be very inching thank you George very much oh well got wind of streaming stories on the Facebook IPO throughout the day and throughout the week as we lead up to the IPO which is can it be other than the price it probably Thursday night it'll start trading Friday so stick with the Wall Street Journal for that